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Saturday, September 03, 2005
Del Mar, others seek to defer expanded VAT
CEBU CITY -- Some legislators will seek the deferment of the expanded Value Added Tax (VAT) to spare the consumers from additional financial burden amid the skyrocketing oil price.
Rep. Raul del Mar (Cebu City, north) said Friday he is scheduled to meet with other legislators to identify measures on how the E-VAT can be suspended until the price of oil in the world market stabilizes.
"Let's see how we can relieve the consumers. The Supreme Court's decision gives us a double whammy, what with the continuing oil price increase, and now additional taxes. It's the marginal earners who will be hit the hardest," del Mar told Sun.Star Cebu.
Sen. Manuel "Mar" Roxas II and Albay Rep. Joey Salceda share del Mar's view.
Roxas, chairman of the Senate committee on economic affairs, is eyeing at least three months deferment of the E-VAT Law. His counterpart in the House, Salceda, on the other hand, seeks to begin implementation of additional taxes on petroleum products and electricity in June 2006.
Roxas said the real impact of E-VAT has to do with the previously exempted sectors and the biggest of these are the sectors of fuel and power.
Malacañang agrees with Roxas' stand, but it says the new tax law will result in a better life for all.
Press Secretary and presidential spokesman Ignacio Bunye urged the public to give the E-VAT a chance.
"Yes, we will face pressure on the prices of goods but the President has put the entire Cabinet on notice on measures to stabilize prices and firm up the safety nets for the poorest sectors," Bunye said.
He said the Supreme Court decision to uphold the Constitutionality of Republic Act (RA) 9337 or the E-VAT Law reopens the door to greater confidence and investments and more jobs for the average Filipino.
Finance Secretary Margarito Teves said he expects the E-VAT to be implemented in October. He said it would take about 15 days for the SC's ruling to become final and another 15 days to publish the law and make it effective.
Groups opposed to the new tax will not wait that long, as they already plan rallies in Cebu.
"Gloria's days are numbered. We expect the silent majority to come out now and join the ouster campaign. The people's September storm is developing," said Ritche Nellas of Migrante.
Cebu City Police Chief Melvin Gayotin reminded cause-oriented not to create trouble or resort to violence during their protest rallies.
For his part, Cebu Archdiocese media liaison officer Msgr. Achilles Dakay said: "With or without E-VAT, we are already experiencing chaos in our country. However, in the long run, makadaut gyud ni sa majority because businessmen will surely pass on the burden of these taxes to consumers."
Cebu City Hall's price monitoring council also agreed in a meeting with the Association of Concerned Commuters and Consumers (AC3) yesterday to launch a joint campaign to keep a close watch on firms that will take advantage of E-VAT.
AC3's Souie Mercardo said monitoring centers will be set up near or inside department stores to handle complaints from consumers and inform them about the new tax.
Senate President Franklin Drilon, meanwhile, said the implementation of RA 9337 will serve as an acid test for the leadership of President Arroyo's Government.
Congressman del Mar was among the lawmakers who initially supported the E-VAT as a way of generating additional revenues to save the cash-strapped government.
But since his proposed "no pass through" amendments were not carried in the conference committee report of the House committee on ways and means, del Mar voted against the law.
The "no pass through" provision is a safety net that oil and power suppliers would not pass on the additional tax to the consumers.
When the amendments reached the Senate, only the provision covering power suppliers was carried. The committee on ways and means eventually killed the amendments covering both power and oil companies.
"That for me was the vital safety net that would protect the consumers but they cancelled it so I now vote against the E-VAT. And I was right, look at how the consumers are suffering from the oil price hike. It will get worse with the E-VAT," said del Mar.
But Cebu City Mayor Tomas Osmeña does not believe the poor will be poorer when the E-VAT is implemented since its effect will be based on one's consumption.
In his news conference Friday, Osmeña said the minimum wage earners will not be taxed as much as the rich consumers since the former buy non-processed food from the public market while the latter often eat in restaurants.
"The government needs money. There will be more suffering, yes, but it will be a lot worse if the government will collapse," said the mayor. (LCR/CYR/LLV/AIV/JST/Sunnex)
(September 3, 2005 issue)
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